Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2023

Derivative

Notional exposure of derivative instruments

	June 30, 2023				December 31, 2022
	Long Notional Exposure		Short Notional Exposure		Long Notional Exposure		Short Notional Exposure
		(in millions)
Primary underlying risk:
Equity contracts	$	2,261	$	3,719	$	1,816	$	5,354
Credit contracts(1)		—		797		—		945
Commodity contracts		—		426		—		22

(1) The short notional amount on our credit default swap positions was approximately $3.1 billion and $3.5 billion at June 30, 2023 and December 31, 2022, respectively. However, because credit spreads cannot compress below zero, our downside short notional exposure to loss is approximately $0.8 billion and $0.9 billion as of June 30, 2023 and December 31, 2022, respectively.

Investment Segment

Derivative

Fair value and income recognized for derivatives not designated as hedging instruments

	Derivative Assets				Derivative Liabilities
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
		(in millions)
Equity contracts	$	70	$	392	$	961	$	719
Credit contracts		327		447		1		1
Commodity contracts		1		—		15		1
Sub-total		398		839		977		721
Netting across contract types(1)		(71)		(34)		(71)		(34)
Total(1)	$	327	$	805	$	906	$	687

(1) Excludes netting of cash collateral received and posted. The total collateral posted at June 30, 2023 and December 31, 2022 was $2,034 million and $1,436 million, respectively, across all counterparties, which are included in cash held at consolidated affiliated partnerships and restricted cash in the condensed consolidated balance sheets.

The following table presents the amount of gain (loss) recognized in the condensed consolidated statements of operations for our Investment segment’s derivatives not designated as hedging instruments:

	Gain (loss) Recognized in Income (1)
	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
	(in millions)
Equity contracts	$	(366)	$	392	$	(650)	$	483
Credit contracts		(2)		(35)		34		(320)
Commodity contracts		(17)		—		(16)		—
	$	(385)	$	357	$	(632)	$	163

(1) Gains (losses) recognized on derivatives are classified in net (loss) gain from investment activities in our condensed consolidated statements of operations for our Investment segment.

Energy Segment

Derivative

Fair value and income recognized for derivatives not designated as hedging instruments

	Derivative Assets				Derivative Liabilities
	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022
		(in millions)
Commodity contracts		17		—		10		5
Netting across contract types(1)		—		—		(5)		(1)
Total(1)	$	17	$	—	$	5	$	4

(1) Excludes netting of derivatives primarily related to initial margin requirements of $9 million and $7 million at June 30, 2023 and December 31, 2022, respectively, which was not offset against derivatives assets, net in the condensed consolidated balance sheets.